Latin America

Mexican cement company Cemex’s debt management continues to earn it strong pricing as its first dollar deal in three years landed inside even where some bankers on the trade were expecting.

Central American sovereign Costa Rica left some analysts wondering where they would find value in the market after tightening pricing well inside pre-deal expectations.

Emerging markets issuers are pumping out mandates, with the buy-side showing little sign yet of closing shop for the year, but investors are not throwing cash at everything.

Mexican retailer Grupo Famsa has pushed out the early-bird deadline on a distressed debt exchange, saying it wants to give bondholders more time to analyse its proposal.

Brazilian steel producer Gerdau could return to the international bond market this week for the first time in over two years, looking to take advantage of strong performance in its bonds and positive sentiment surrounding Brazil.

As of Thursday afternoon, pricing on a duo of Brazilian high yield credits looked set to be pushed to Friday, as investors in Latin American bonds were given the rare chance to get stuck into some riskier names.

Bankers said that Itaú Unibanco’s proposed tier two dollar deal was “exactly the kind of paper people want to buy” as the Brazilian lender lined up investor meetings in the wake of the Brazilian sovereign’s successful first ever dual tranche dollar deal.

Market participants expect Costa Rica will have little trouble completing a crucial bond issuance next week, with the lack of high yielding sovereign assets in Latin America expected to favour a country that has worked to improve its outlook this year.

Open interest in CME Group’s BRL/USD futures rose in the run up to the Brazilian Central Bank’s 50bp benchmark interest rate cut and has remained elevated ever since.

A group of Barbados' creditors on Wednesday welcomed the government’s launch of an exchange that could see the island nation wrap up an 18 month debt restructuring process.

Brazil completed a tender offer for seven different dollar bonds on Tuesday, buying back for cash small amounts of bonds maturing between 2027 and 2041 but mostly guiding bondholders into its new long 30 year issued on Monday.

Latin American bond market participants away from Costa Rica’s proposed $1.5bn cross-border issue said they thought the deal would find strong demand as the Central American nation announced a roadshow amid friendly market conditions on Tuesday.